SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
    (Mark One)

          [ X ]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   June 30, 2000

                                       OR

       [   ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                to
                                -----------------------------    ---------------

                        Commission file number: 333-59109

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

<TABLE>
<CAPTION>
<S>                                                                                            <C>
         Delaware                                                                              22-3520840
(State or other jurisdiction of                                                             (I.R.S. employer
incorporation or organization)                                                              identification No.)
</TABLE>

                                  344 Route 46
                               Rockaway, NJ 07866
              (Address of principal executive offices) (Zip code)

       Registrant's telephone number, including area code: (973) 625-1012


                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)


         Indicate  by check X  whether  registrant  (1) has  filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or for such shorter period that  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

         As of August 10, 2000,  2,000,000 shares, $.001 par value per share, of
Able Energy, Inc. were issued and outstanding.
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1 - Financial Statements (Unaudited)
<TABLE>
<CAPTION>

                                                 TABLE OF CONTENTS

                                                                                                PAGE

<S>                                                                                              <C>
         Accountants' Report                                                                     3

         Consolidated Balance Sheets as of December 31, 1999 and
            June 30, 2000                                                                        4 - 5

         Consolidated Statements of Income for the three and six
            months ended June 30, 2000 and June 30, 1999                                         6

         Consolidated Statement of Stockholders' Equity six months
            ended June 30, 2000                                                                  7

         Consolidated Statements of Cash Flows for the six months
            ended June 30, 2000 and 1999                                                         8

         Notes to Unaudited Financial Statements                                                 9 - 18

</TABLE>








<PAGE>
                           Simontacchi & Company, LLP
                              170 East Main Street
                           Rockaway, New Jersey 07866


To the Board of Directors
Able Energy, Inc.
Rockaway, New Jersey 07866


                         Independent Accountants' Report

We have reviewed the condensed  consolidated  balance sheet of Able Energy, Inc.
and  Subsidiaries  as of June 30, 2000, and the related  condensed  consolidated
statements  of income and cash flows for the three and six month  periods  ended
June 30, 2000 and 1999. These financial statements are the responsibility of the
Company's management.

We conducted our review in  accordance  with the  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information  consists primarily of applying analytical  procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of an opinion  regarding the  financial  statements  taken as a
whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.

We have  previously  audited,  in accordance  with generally  accepted  auditing
standards,  the  consolidated  balance  sheet as of December 31,  1999,  and the
related consolidated statements of income, retained earnings, and cash flows for
the year then ended (not  presented  herein);  and in our report dated March 16,
2000,  we  expressed  an  unqualified  opinion on those  consolidated  financial
statements.  In our  opinion,  the  information  set  forth in the  accompanying
condensed  consolidated balance sheet as of December 31, 1999, is fairly stated,
in all material  respects,  in relation to the  consolidated  balance sheet from
which it has been derived.





Rockaway, New Jersey
August 10, 2000

                                        3
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET


                                     ASSETS
<TABLE>
<CAPTION>

                                                                                                June 30,                December 31,
                                                                                                  2000                      1999
                                                                                                (Unaudited)                Audited

Current Assets:
<S>                                                                                       <C>                           <C>
    Cash                                                                                  $ 2,266,980                   $ 2,926,412
    Accounts Receivable (Less Allowance for Doubtful
     Accounts of ($157,974) at 12/31/99 and ($157,974) 6/30/00                              2,201,840                     1,996,500
    Inventory                                                                                 303,519                       229,979
    Notes Receivable - Current Portion                                                         16,798                        61,748
    Miscellaneous Receivable                                                                   24,620                        22,640
    Prepaid Expense                                                                            82,410                        48,826
    Prepaid Expense - Income Taxes                                                              3,301                       119,951
    Deferred income Tax                                                                        48,270                        48,270
    Due From Officer                                                                           44,690                        44,690
                                                                                           ----------                    ----------
        Total Current Assets                                                                4,992,428                     5,499,016
                                                                                           ----------                    ----------

Property and Equipment:
    Land                                                                                      451,925                       451,925
    Building                                                                                1,023,250                     1,008,250
    Trucks                                                                                  2,264,345                     2,236,508
    Fuel Tanks                                                                                911,096                       836,790
    Machinery and Equipment                                                                   336,473                       346,198
    Leasehold Improvements                                                                    192,364                       187,364
    Cylinders                                                                                 363,146                       319,490
    Office Furniture and Equipment                                                             21,325                        14,841
     Web Site Development Costs                                                             1,101,092                       -
                                                                                           ----------                    ----------
                                                                                            6,665,016                     5,401,366
    Less: Accumulated depreciation                                                          1,488,264                     1,266,201
                                                                                           ----------                   -----------
        Net Property and Equipment                                                          5,176,752                     4,135,165
                                                                                           ----------                   -----------

Other Assets:
    Deposits                                                                                   37,625                        94,625
    Notes Receivable - Less Current Portion                                                   193,814                       126,863
    Customer List, Less Amortization of 1999 ($125,045), and
      2000 ($146,070).                                                                        464,780                       485,805
    Covenant Not to Compete, Less Amortization of 1999
     ($125,123) and 2000 ($153,480).                                                          130,087                       158,444
                                                                                           ----------                    ----------
         Total Other Assets                                                                   826,306                       865,737
                                                                                           ----------                    ----------

        Total Assets                                                                      $10,995,486                   $10,499,918
                                                                                          ===========                   ===========

</TABLE>

                             See Accompanying Notes
                                        4
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEET (Cont'd)



                       LIABILITIES & STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>



                                                                                            June 30,               December 31,
                                                                                                2000                       1999
                                                                                         (Unaudited)                  (Audited)
Current Liabilities:
<S>                                                                                      <C>                        <C>
    Accounts Payable                                                                     $ 1,942,296                $ 1,638 699
    Note Payable - Bank                                                                      292,228                    201,214
    Current Portion of Long-Term Debt                                                        680,020                    789,978
    Accrued Expenses                                                                         300,871                    260,818
    Customer Advance Payments                                                                      -                    156,738
    Current Portion of Deferred Income                                                        25,000                     14,548
    Escrow Deposits                                                                           35,000                     15,000
                                                                                        ------------                -----------
        Total Current Liabilities                                                          3,275,415                  3,076,995


Deferred Income: less current portion                                                         82,408                     53,342
Deferred Income Taxes                                                                         60,201                     56,201
Long Term Debt: less current portion                                                       1,318,521                  1,529,444
                                                                                        ------------                -----------
        Total Liabilities                                                                  4,736,545                  4,715,982
                                                                                        ------------                -----------

Stockholders' Equity:
    Common Stock
    Authorized 10,000,000 Shares, Par Value $.001 per
       share Issued and Outstanding 2,000,000 shares                                           2,000                      2,000
    Paid in Surplus                                                                        5,662,775                  5,662,775
    Retained Earnings                                                                        594,166                    119,161
                                                                                        ------------                -----------
        Total Stockholders' Equity                                                         6,258,941                  5,783,936
                                                                                        ------------                -----------

        Total Liabilities and Stockholders' Equity                                       $10,995,486                $10,499,918
                                                                                        ============                ===========



</TABLE>




                             See Accompanying Notes
                                        5
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME

                                   (UNAUDITED)
<TABLE>
<CAPTION>




                                                            THREE MONTHS JUNE 30,       SIX MONTHS ENDED JUNE 30,
                                                          2000             1999           2000            1999
                                                          ----             ----           ----            ----
<S>                                                  <C>             <C>             <C>             <C>
Net Sales ........................................   $  4,851,781    $  3,376,760    $ 15,966,984    $  9,557,695

Cost of Sales ....................................      4,005,704       2,878,708      13,043,018       7,305,885
                                                     ------------    ------------    ------------    ------------

   Gross Profit ..................................        846,077         498,052       2,923,966       2,251,810
                                                     ------------    ------------    ------------    ------------

Expenses
   Selling, General and Administrative Expenses ..      1,110,955         638,427       1,995,190       1,339,000
   Depreciation and Amortization Expense .........        168,411         107,189         338,100         215,440
                                                     ------------    ------------    ------------    ------------
      Total Expenses .............................      1,279,366         745,616       2,333,290       1,554,440
                                                     ------------    ------------    ------------    ------------

   Income (Loss) From Operations .................       (433,289)       (247,564)        590,676         697,370
                                                     ------------    ------------    ------------    ------------

Other Income (Expenses):
   Interest and Other Income .....................        102,210          28,963         145,285          48,054
   Interest Expense ..............................        (47,881)        (48,513)        (98,100)        (76,940)
   Loss on Abandonment of Fixed Assets ...........        (42,206)                        (42,206)
                                                     ------------    ------------    ------------    ------------
      Total Other Income (Expenses) ..............         12,123         (19,550)          4,979         (28,886)
                                                     ------------    ------------    ------------    ------------

   Income (Loss) Before Provision for Income Taxes
    and Extraordinary Item .......................       (421,166)       (267,114)        595,655         668,484

Provision  for Income Taxes ......................       (184,950)       (106,600)        253,500         272,010
                                                     ------------    ------------    ------------    ------------

   Net Income (Loss) - Continuing Operations .....       (236,216)       (160,514)        342,155         396,474

   Extraordinary Item ............................           --              --          (132,850)           --
                                                     ------------    ------------    ------------    ------------

Net Income (Loss) ................................   $   (236,216)   $   (106,514)   $    475,005    $    396,474
                                                     ============    ============    ============    ============

Net Income (Loss) Per Share - Continuing .........   $      (.118)   $      (.154)   $       .172    $       .380
                                                     ------------    ------------    ------------    ------------
Operations
                                                     $       --      $       --      $       .066    $       --
                                                     ------------    ------------    ------------    ------------
Extraordinary Item - Per Share
                                                     $      (.118)   $      (.154)   $       .238    $       .380
                                                     ------------    ------------    ------------    ------------
    Net Income (Loss) Per Share

Weighted Average Number of Common Shares .........   $  2,000,000    $  1,044,198    $  2,000,000    $  1,044,198
   Outstanding                                       ============    ============    ============    ============
</TABLE>





                             See Accompanying Notes
                                        6
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

                         SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)
<TABLE>
<CAPTION>





                            Common Stock
                           .001 Par Value
                                                      Additional                   Total
                                                       Paid-in       Retained   Stockholders'
                               Shares        Amount    Surplus       Earnings      Equity

<S>               <C>        <C>         <C>          <C>          <C>          <C>
Balance - January 1, 2000    2,000,000   $    2,000   $5,662,775   $  119,161   $5,783,936

Net Income ..............                                             475,005      475,005
                            ----------   ----------   ----------   ----------   ----------

Balance - June 30, 2000 .    2,000,000   $    2,000   $5,662,775   $  594,166   $6,258,941
                            ==========   ==========   ==========   ==========   ==========

</TABLE>



























                             See Accompanying Notes
                                        7
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                               SIX MONTHS ENDED JUNE 30
                                                                                             UNAUDITED

                                                                                                   2000                      1999
                                                                                                   ----                      ----
Cash Flows From Operating Activities
<S>                                                                                              <C>                    <C>
   Net Income                                                                                    $ 475,005              $   396,474
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                                                                338,100                  215,440
      Loss on Disposition of  Equipment                                                             42,206
      (Increase) Decrease in:
         Accounts Receivable                                                                      (205,340)                   5,237
         Inventory                                                                                 (73,540)                 (14,098)
         Prepaid Expenses                                                                          (33,584)                  84,419
         Deposits                                                                                   57,000                   12,575
         Prepaid Income Taxes                                                                      116,650                        -
      Increase (Decrease) in:
         Accounts Payable                                                                          303,597                  (98,785)
         Accrued Expenses                                                                           40,053                   82,273
         Other Taxes Payable                                                                             -                    9,337
         Customer Advance Payments                                                                (156,738)                (289,510)
         Income Taxes Payable                                                                            -                  154,735
         Deferred income Taxes                                                                       4,000                    7,780
         Deferred Income                                                                            39,518                   (4,850)
                                                                                              ------------            --------------
           Net Cash Provided by Operating Activities                                               946,927                  561,027
                                                                                              ------------            --------------

Cash Flows From Investing Activities
   Purchase of Property and Equipment                                                             (271,419)                (380,171)
   Web Site Development Costs                                                                   (1,101,092)                        -
   (Increase)  Decrease in Shareholder's Loan                                                            -                   (5,342)
    Note and Other Receivables                                                                     (23,981)                  (5,350)
                                                                                              ------------            --------------
          Net Cash Used  By Investing Activities                                                (1,396,492)                (390,863)
                                                                                              ------------            --------------

Cash Flows From Financing Activities
   Increase in Notes Payable                                                                        91,014                  525,032
   Decrease in Long-Term Debt                                                                     (320,881)                (374,150)
   Increase Escrow Deposit Payble                                                                   20,000                        -
   Funds from Sale of Common Stock                                                                   -                    5,660,775
                                                                                              ------------            --------------
           Net Cash (Used) Provided  By Financing
          Activities                                                                              (209,867)               5,811,657
                                                                                              ------------            --------------

Net (Decrease) Increase In Cash                                                                   (659,432)               5,981,821
Cash - Beginning of Year                                                                         2,926,412                  125,844
                                                                                              ------------            --------------
Cash - End of Year                                                                              $2,266,980               $6,107,665
                                                                                              ============            ==============

The Company had Interest Cash Expenditures of:                                                $     98,100              $    76,940
The Company had Tax Cash Expenditures of:                                                     $          -              $    10,002

</TABLE>

                             See Accompanying Notes
                                        8
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT

                       DECEMBER 31, 1999 AND JUNE 30, 2000


Note 1         Basis of Presentation

     Able Energy,  Inc. was  incorporated  in the state of Delaware on March 13,
1997. Mr.  Timothy  Harrington  exchanged his stock in the following  companies:
Able Oil Company (a New Jersey corporation),  Able Oil Company Montgomery,  Inc.
(a Pennsylvania  corporation),  A & O Environmental Services, Inc. (a New Jersey
corporation),  Able Oil  Melbourne,  Inc.  (a Florida  corporation)  and his 99%
interest in Able Propane,  LLC for 1,000 shares of Able Energy,  Inc. and became
its sole  shareholder.  In December 1998,  the Company sold A & O  Environmental
Services, Inc. and Able Oil Company Montgomery, Inc.

     On August 27,  1999,  the  Company,  through a newly  formed  wholly  owned
subsidiary, Able Energy - New York, Inc., purchased the assets of B & B Fuels of
Warrensburg, New York. This acquisition was treated as a purchase.

     On August 31,  1999,  the  Company,  through a newly  formed  wholly  owned
subsidiary,  Able Energy  Terminal,  LLC,  purchased  the  facility on Route 46,
Rockaway, NJ. The facility has two tenants.

     The  Company  is the  majority  owner of a newly  formed  subsidiary,  Able
Energy.Com,  which is in the process of  establishing a Web Site for the sale of
energy products  through a network of suppliers  originally on the East coast of
the United States.

     The consolidated  interim  financial  statements  included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities Exchange Commission. Certain information and footnote disclosures
normally included in financial  statements prepared in accordance with generally
accepted  accounting  principles have been condensed or omitted pursuant to such
rules and  regulations,  although the Company  believes that the disclosures are
adequate to make the information presented not misleading.

     These statements  reflect all  adjustments,  consisting of normal recurring
adjustments  which,  in the  opinion  of  management,  are  necessary  for  fair
presentation of the information  contained  therein.  It is suggested that these
consolidated  financial  statements  be read in  conjunction  with the financial
statements  and notes thereto  included in the  Company's  annual report for the
year ended December 31, 1999. The Company follows the same  accounting  policies
in preparation of interim reports.

     Results of operations for the interim  periods are not indicative of annual
results.



                                        9
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000



Note 2         Summary of Significant Accounting Policies

Nature of Operations

     Able Oil Company,  Able Melbourne and Able Energy - New York, Inc. are full
service oil companies that market and distribute  home heating oil,  diesel fuel
and kerosene to residential and commercial  customers  operating in the northern
New Jersey and Melbourne, Florida, and Warrensburg, New York respectively.  Able
Propane,  which was incorporated in July 1996,  installs propane tanks, which it
owns, and sells propane gas for heating and cooking along with other residential
and commercial uses.

     The  Company's  operations  are  subject to  seasonal  fluctuations  with a
majority of the Company's business occurring in the late fall and winter months.
Approximately 70% of the Company's revenues are earned and received from October
through March, and the  overwhelming  majority of such revenues are derived from
the sale of home heating oil. However, the seasonality of the Company's business
is offset,  in part,  by the  increase in  revenues  from the sale of diesel and
gasoline  fuels during the spring and summer  months due to the increased use of
automobiles and construction apparatus.

Principles of Consolidation

     The consolidated  financial statements include the accounts of Able Energy,
Inc. and its subsidiaries.  The minority interest of 1% in Able Propane,  LLC is
so  immaterial  and has not been shown  separately.  All  material  intercompany
balances and transactions were eliminated in consolidation.

Inventories

     Inventories are valued at the lower of cost (first in, first out method) or
market.

Property and Equipment

     Property and  equipment are stated at cost less  accumulated  depreciation.
Depreciation  is  provided  by using the  straight-line  method  based  upon the
estimated useful lives of the assets (5 to 40 years).

     For income tax basis,  depreciation  is calculated by a combination  of the
straight-line and modified  accelerated cost recovery systems established by the
Tax Reform Act of 1986.

     Expenditures for maintenance and repairs are charged to expense as incurred
whereas expenditures for renewals and betterments are capitalized.

     The cost and related  accumulated  depreciation of assets sold or otherwise
disposed of during the period are removed from the accounts. Any gain or loss is
reflected in the year of disposal.



                                       10
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000




Note 2         Summary of Significant Accounting Policies (cont'd)

Web Site Development Costs

     Costs of  $1,101,092  incurred  in the  developmental  stage  for  computer
hardware  and software  have been  capitalized  in  accordance  with  accounting
pronouncement  SOP98-1.  The costs will be  amortized  on a straight  line basis
during the estimated useful life.

Intangible Assets

     Intangibles are stated at cost and amortized as follows:  Customer Lists of
$571,000 and Covenant Not To Compete of $183,567  related to the Connell's  Fuel
Oil  Company  acquisition  on October  28,  1996,  by Able Oil Company are being
amortized  over a  straight-line  period  of 15 and 5 years,  respectively.  The
current  period  amortization  also  includes  a customer  list of  $39,850  and
Covenant Not To Compete of $100,000 relating to the acquisition from B & B Fuels
on August 27, 1999, is being amortized over a  straight-line  period of 10 and 5
years, respectively.  The amortization for the six months ended June 30, 2000 is
$57,377.

     For income tax basis,  the  Customer  Lists and the Covenant Not To Compete
are  being  amortized  over a  straight-line  method  of 15 years as per the Tax
Reform Act of 1993.

Use of Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that affect the amounts  reported in the financial  statements  and
accompanying notes. Although these estimates are based on management's knowledge
of  current  events  and  actions  it may  undertake  in the  future,  they  may
ultimately differ from actual results.

Income Taxes

     Effective January 1, 1997, all the subsidiaries, which were S-Corporations,
terminated  their S- Corporation  elections.  The  subsidiaries are now filing a
consolidated tax return with Able Energy, Inc.

     Effective  January 1, 1997,  the  Company has elected to provide for income
taxes based on the provisions of Financial  Accounting  Standards Board ("FASB")
Statement of Financial  Accounting  Standards ("SFAS") No. 109,  "Accounting for
Income Taxes", which requires recognition of deferred tax assets and liabilities
for the expected  future tax  consequences  of events that have been included in
the financial  statements and tax returns in different years. Under this method,
deferred  income  tax  assets  and  liabilities  are  determined  based  on  the
difference  between  the  financial  statement  and  tax  bases  of  assets  and
liabilities  using  enacted  tax  rates in  effect  for the  year in  which  the
differences are expected to reverse.

                                       11
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000



Note 2         Summary of Significant Accounting Policies (cont'd)
-----------------------------------------------------------------

Concentrations of Credit Risk

     The  Company  performs  on-going  credit   evaluations  of  its  customers'
financial conditions and requires no collateral from its customers.

     Financial   instruments   which   potentially   subject   the   Company  to
concentrations  of credit risk  consists of checking and savings  accounts  with
several  financial  institutions in excess of insured  limits.  The excess above
insured  limits is  approximately  $2,093,000.  The Company does not  anticipate
non-performance by the financial institution.

Cash

     For the purpose of the statement of cash flows,  cash is defined as balance
held in corporate checking accounts and money market accounts.

Note 3          Notes Receivable

     The Company  has a  Receivable  from Able  Montgomery,  Inc.  and Andrew W.
Schmidt  related to the sale of Able  Montgomery,  Inc.  to Schmidt  and a truck
financed by Able Energy,  Inc. No payments of  principal  or interest  have been
received  for more than one year.  A new note was drawn  dated June 15, 2000 for
$170,000,  including the prior balance,  plus accrued  interest.  The Note bears
interest at 9.5% per annum and payments  commence  October 1, 2000. The payments
will be monthly with a final  payment of $55,981.07  due September 1, 2010.  The
note is secured by a pledge and security  agreement and stock purchase agreement
(Stock of Able  Montgomery,  Inc.),  dated  December 31, 1998, and the assets of
Andrew W. Schmidt  with the note dated June 15, 2000.  The income on the sale of
the company in December 1998 and the accrued  interest on the drawing of the new
note are shown as deferred income to be realized on collection of the notes. The
note and deferred  income are being shown as non-current on the Balance Sheet at
June 30, 2000.

Note 4          Inventories
<TABLE>
<CAPTION>

                     Items                                                       2000                   1999
                     -----                                                       ----                   ----
<S>                                                                            <C>                    <C>
                     Heating Oil                                               $155,953               $ 89,419
                     Diesel Fuel                                                 32,730                 37,596
                     Kerosene                                                     7,047                  4,709
                     Propane                                                      8,045                  5,541
                     Parts and Supplies                                          99,744                 92,714
                                                                              ---------              ---------
                          Total                                                $303,519               $229,979
                                                                              =========              =========
</TABLE>




                                       12
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000

Note 5         Notes Payable Bank

     The  Agreement  with Able Oil Company and PNC Bank,  dated August 11, 1999,
was amended July 14, 2000. The amended is as follows:

     1. The line of credit is increased from $500,000 to $750,000.

     2. The current expiration date is June 30, 2001.

     3. Security is hereby amended to reduce the required amount of pledged cash
collateral  from $972,000 to $490,000.  This is  represented by a first priority
lien on collateral consisting of a Provident Institution Money Market Fund.

     4.  Security  is added by a guaranty  and  suretyship  agreement  with Able
Energy, Inc., Able Propane, LLC, Able Energy Terminal,  LLC, Able Oil Melbourne,
Inc.  and Able  Energy  New York,  Inc.  and will  unconditionally  jointly  and
severally guarantee payment to the Bank.

     5. A security  agreement  granting the bank a first priority perfected lien
on the  existing  and  future  personal  property  of Able Oil  Company  and the
companies listed in item 4 above. Notwithstanding the aforesaid requirement, the
named entities may finance the  acquisition  of equipment  with other  financial
parties  by  way  of  true  leases  or  financing  leases  having  an  aggregate
outstanding  balance of  $1,000,000  at any given time,  providing to such third
party  financers  liens upon the equipment thus  financed,  which liens shall be
superior  in  priority  to the lien of the bank in any  such  equipment.

     6. The agreement calls for certain financial covenants  commencing with the
fiscal year end 2000.

     The line of credit bears an interest  rate of Prime minus  one-half  (1/2%)
with an outstanding balance of $292,228 at June 30, 2000.

     There is a term loan  with PNC Bank  which  was  refinanced  for a total of
$675,000 on June 12, 1998 with a current  interest rate of 8.15%. The balance at
June 30, 2000 is $225,000 and has one year to maturity.

Note 6          Long-Term Debt

     Mortgage note payable dated,  August 27, 1999, related to the purchase of B
& B Fuels  facility  and  equipment.  The total  note is  $145,000.  The note is
payable in the monthly  amount of principal  and interest of $1,721.18  with and
interest rate of 7.5% per annum.  The initial  payment was made on September 27,
1999,  and continues  monthly until August 27, 2009 which is the final  payment.
The note is secured by a mortgage made by Able Energy New York, Inc. on property
at 2 and 4 Green  Terrace  and 4 Horican  Avenue,  Town of  Warrensburg,  Warren
County, New York. The balance due on this Note at June 30, 2000 was $136,618.



                                       13
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000






Note 6          Long-Term Debt (cont'd)

     Mortgage note payable  dated,  August 31, 1999,  related to the purchase of
the facility and equipment in Rockaway,  New Jersey by Able Energy Terminal, LLC
("Terminal"). The note is in the amount of $650,000.

     Pursuant to Section 4.4 of the  Agreement of Sale to purchase the Terminal,
the  Principal  Sum of the $650,000  note shall be reduced by an amount equal to
one-half of all sums expended by Borrower on the  investigation  and remediation
of the property provided,  however,  that the amount of said reduction shall not
exceed $250,000 (the "Remediation Amount").

     The "Principal Sum" less the "Remediation  Amount" shall be an amount equal
to $400,000 (the "Reduced  Principal Sum"). The Reduced Principal Sum shall bear
interest from the date hereof at the rate of 8.25% per annum. Any portion of the
Remediation  Amount not utilized in the  investigation  and  remediation  of the
property  shall  not  begin to  accrue  interest  until  such time that (i) a No
Further  Action  Letter"  is  obtained  from  the  Department  of  Environmental
Protection,  and (ii) an outstanding lawsuit concerning the property is resolved
through settlement or litigation  (subject to no further appeals).  All payments
on this Note shall be applied first to the payment of interest, with any balance
to the payment and reduction of the Reduced Principal Sum.

     Interest  shall be due and payable  commencing on September 30, 1999 on the
Reduced  Principal  Sum of the  note on the  last  day of each  month  up to and
including July 31, 2004.

     The Note is  collateralized  by the property and  equipment  purchased  and
assignment  of the  leases.  The  balance  due on this Note at June 30, 2000 was
$650,000.













                                       14
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000



Note 7          Income Taxes

     Effective  January 1, 1997,  the Company  adopted  Statement  of  Financial
Accounting Standards No. 109, Accounting for Income Taxes.

     The differences  between the statutory  Federal Income Tax and Income Taxes
Continuing Operation is accounted for as follows:
<TABLE>
<CAPTION>

                                                                                     2000

                                                                                                     Percent of
                                                                                                        Pretax
                                                                                Amount                  Income

<S>                                                                           <C>                         <C>
Statutory Federal Income Tax                                                  $199,200                    34.0%

Increase resulting from State Income
Tax, net of Federal Tax benefit                                                 54,300                     5.9%
                                                                              --------                   -----

Income Taxes                                                                  $253,500                    39.9%
                                                                              ========                   =====

Income Taxes consist of:
 Current                                                                      $249,500
 Deferred                                                                        4,000
                                                                             ---------
    Total                                                                     $253,500
                                                                              ========

                                                                                   1999

                                                                                                      Percent of
                                                                                                         Pretax
                                                                                Amount                   Income

Statutory Federal Income Tax                                                  $210,700                    34.0%

Increase resulting from State Income
Tax, net of Federal Tax benefit                                                 61,310                     5.9%
                                                                              --------                   -----

Income Taxes                                                                  $272,010                    39.9%
                                                                              ========                   =====

Income Taxes consist of:
 Current                                                                      $264,860
 Deferred                                                                        7,150
                                                                             ---------
    Total                                                                     $272,010
                                                                              ========
</TABLE>


                                       15
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000



Note 7          Income Taxes (cont'd)

     The types of  temporary  differences  between  the tax bases of assets  and
liabilities  and  their  financial   reporting  amounts  that  give  rise  to  a
significant  portion of the  deferred tax  liability  and deferred tax asset and
their approximate tax effects are as follows at:
<TABLE>
<CAPTION>

                                                                                             2000

                                                                                   Temporary                 Tax
                                                                                  Difference               Effect

<S>                                                                             <C>                    <C>
Depreciation                                                                    $ (189,389)            $ (60,201)
Allowance for Doubtful Accounts                                                     157,974                44,235
Gain on Sale of Subsidiary                                                           18,766                 4,035

                                                                                             1999

                                                                                   Temporary                 Tax
                                                                                  Difference               Effect

Depreciation                                                                     $(172,590)             $(58,381)
Allowance for Doubtful Accounts                                                      69,235                16,695
Gain on Sale of Subsidiary                                                           18,766                 4,275

</TABLE>
Note 8         Commitments and Contingencies

     The Company is subject to laws and  regulations  relating to the protection
of the  environment.  While it is not possible to quantify  with  certainty  the
potential impact of actions regarding  environmental  matters, in the opinion of
management,  compliance with the present environmental  protection laws will not
have a material adverse effect on the financial condition, competitive position,
or capital expenditures of the Company.

     In  accordance  with the agreement on the purchase of the property on Route
46,  Rockaway,  New Jersey by Able Energy  Terminal,  LLC, the  purchaser  shall
commence after closing,  the  investigation  and remediation of the property and
any  hazardous  substances  emanating  from the property in order to obtain a No
Further Action letter from the New Jersey Department of Environmental Protection
(NJDEP).  The  purchaser  will also  pursue  recovery  of all costs and  damages
related  thereto in the  lawsuit by the  seller  against a former  tenant on the
purchased  property.  Purchaser will assume all responsibility and direction for
the lawsuit,  subject to the sharing of any recoveries from the lawsuit with the
seller, 50-50. The seller by reduction of its mortgage will pay costs related to
the above up to $250,000 (see Note 6). In the opinion of management, the Company
will not sustain costs in this matter which will have a material  adverse effect
on its financial condition.

                                       16
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000


Note 8         Commitments and Contingencies (cont'd)


     Able Oil Company has been examined by the Internal  Revenue Service through
the year ended  December  31,  1995.  The only open year for Able Oil Company is
December  31, 1996 and Able  Energy,  Inc.,  et al, open years are  December 31,
1997, 1998 and December 31, 1999.

Note 9         Operating Lease

     Able Energy Terminal, LLC, has acquired the following lease on the property
it purchased on Route 46 in Rockaway, New Jersey.

     The lease with Able Oil Company,  a wholly owned subsidiary of Able Energy,
Inc., has an expiration  date of July 31, 2004. The lease provides for a monthly
payment of $1,200 plus a one cent per gallon  through put, as per a monthly rack
meter reading.

     Estimated  future rents are $14,400 per year,  plus the one cent per gallon
through put charges per the monthly rack meter readings.

     The Company  leased an  additional  facility on Route 46 in  Rockaway,  New
Jersey.  The lease has a term of one year from  September  1, 1999 to August 31,
2000.  The rent is $1,300  per  month,  $15,600  for the  year,  plus 10% of the
increase  in real  estate  taxes over the base year,  1999.  The Company has the
option to renew for five  additional  one-year  terms.  The  renewals  are at an
increase of $100 per month during each renewal term.  The estimated  future rent
upon one year renewal is $16,800.

Note 10          Franchising

     The  Company  has  begun  operations  to  sell  franchises  permitting  the
operation of a franchised  business  specializing  in residential and commercial
sales of fuel oil,  diesel fuel,  gasoline,  propane and related  services.  The
Company  will  provide  training,  advertising  and use of Able  credit  for the
purchase of product,  among other  things,  as specified in the  Agreement.  The
franchisee  has an option to sell the business back to the Company after two (2)
years of operations for a price  calculated  per the Agreement.  The Company has
signed its first  franchise  agreement in June 2000. The franchisee has paid the
company the following:

     1. A non-refundable franchise fee of $25,000 which is currently in deferred
income as operations are to begin in September 2000.

     2. An  advertizing  deposit of $15,000 and a $5,000  escrow  deposit.  This
$20,000 is shown as an Escrow Deposit liability.  The $15,000 will be charged to
advertising as the funds are used.

                                       17
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                       DECEMBER 31, 1999 AND JUNE 30, 2000




Note 11          Per Share Information

     Per share  information  has been  computed  based on the  weighted  average
number of shares.  The shares  give effect to a  1,000-for-1  stock spilt by the
Company and its public offering of 1,000,000 shares.


Note 12          Extraordinary Item

     The Company utilized a net operating loss  carryforward from the year ended
December 31, 1999 of approximately $318,000 which resulted in a tax reduction of
approximately $132,850.





























                                       18
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES



ITEM 2            Management's Discussion and Analysis of Financial Condition
                  and Results of Operations

     Statements in this Quarterly Report on Form 10-QSB concerning the Company's
outlook  or  future  economic  performance,   anticipated  profitability,  gross
billings,   expenses  or  other  financial  items,  and  statements   concerning
assumption made or exceptions to any future events,  conditions,  performance or
other matter are "forward looking statements," as that term is defined under the
Federal  Securities  Laws.  Forward-looking  statements  are  subject  to risks,
uncertainties,  and other  factors  which would cause  actual  results to differ
materially from those stated in such statements.  Such risks, and  uncertainties
and factors include, but are not limited to: (i) changes in external competitive
market  factors  or  trends  in  the  Company's   results  of  operation;   (ii)
unanticipated  working capital or other cash  requirements  and (iii) changes in
the  Company's  business  strategy or an  inability  to execute its  competitive
factors  that  may  prevent  the  Company  from  competing  successfully  in the
marketplace.

Revenue Recognition

     Sales of fuel and heating  equipment are recognized at the time of delivery
to  the  customer,  and  sales  of  equipment  are  recognized  at the  time  of
installation.  Revenue from repairs and  maintenance  service is recognized upon
completion  of  the  service.  Payments  received  from  customers  for  heating
equipment service contracts are deferred and amortized into income over the term
of the respective service  contracts,  on a straight line basis, which generally
do not exceed one year.

Results of Operations

     Three months  ended June 30, 2000,  compared to the three months ended June
30, 1999.

     The Company reported revenues of $4,851,781 for the three months ended June
30, 2000, an increase of 43.68% over the prior year's revenues of $3,376,760 for
the same three month  period.  This  increase  can be  attributed  to  increased
customer  base,  increased  sales as a result of cooler weather in the Northeast
during this quarter and an increase in the price of products sold by the Company
above the price of the prior  year.  The  acquisition  of B & B Fuels  increased
sales for the quarter by approximately $238,000.  Increased revenues can also be
attributable to increased marketing efforts.

     Gross  profit  margin,  as a percentage  of revenues,  for the three months
ended  June 30,  2000,  increased  to 17.44% of net  revenues,  representing  an
increase of 2.69% over a margin of 14.75% for the same  quarter on year ago. The
increase in margin is  primarily  a result of  increased  customer  base of home
heating oil customers and better control of cost/price relationship.

     Selling,  General  and  Administrative  expenses  increased  by $472,528 or
74.01% from $638,427 for the three months ended June 30, 1999 to $1,110,955  for
the three months  ended June 30, 2000.  This  increase was  attributable  to the
operations of two subsidiaries  formed in August 1999 of approximately  $101,000
and an increase in insurance,  advertising,  professional  fees, labor costs and
benefits.

                                       19
<PAGE>
     Operating  Loss for the three months ended June 30, 2000 was  $433,289,  an
increase of 75.02% over the Company's  operating  loss of $247,564 for the three
months ended June 30, 1999. This increase in operating loss was  attributable to
the Company's  marketing  program,  additional staff which was carried over from
the winter months and exploring new ventures which increased  professional  fees
and other costs.

     Net Loss for the three months  ended June 30, 2000  increased by $75,702 or
47.16% to $236,216 as compared to the previous  year.  This increase in net loss
was the result of greater  marketing  costs,  sales  promotion  and higher staff
salaries  which  were  carried  over  from the  winter  months  that  were  more
productive than the prior year.

     Six months ended June 30,  2000,  compared to the six months ended June 30,
1999.

     The Company reported  revenues of $15,966,984 for the six months ended June
30, 2000, an increase of 67.06% over the prior year's revenues of $9,557,695 for
the same six month period. This increase can be attributed to increased sales as
a result of cooler  weather in the Northeast  during the March quarter and April
and an increase in the price of products  sold by the Company above the price of
the prior  year.  The  acquisition  of B & B Fuels  increases  sales for the six
months by approximately $735,000. Increased revenues can also be attributable to
increased marketing efforts

     Gross profit margin, as a percentage of revenues,  for the six months ended
June 30, 2000  decreased to 18.31% of net revenues,  representing  a decrease of
5.25%  over a margin of 23.56% for the same six month  period one year ago.  The
reduction  in margin is  primarily a result of unstable  retail  prices for home
heating oil caused by a large raise in product cost.

     Selling,  General  and  Administrative  expenses  increased  by $656,190 or
49.01% from  $1,339,000 for the six months ended June 30, 1999 to $1,995,190 for
the six months ended June 30, 2000.  These  expenses can be  attributable  to an
increase  in the  size of  general  operations  of the  Company,  including  the
operations of two subsidiaries  formed in August 1999 of approximately  $181,000
and an increase in marketing, insurance, wages and benefits.

     Operating  Income for the six months  ended June 30, 2000 was  $590,676,  a
decrease of 15.30% over the Company's  operating  income of $697,370 for the six
months ended June 30, 1999. This decrease in operating  income was  attributable
to lower gross margin caused by unstable prices for home heating oil,  increased
insurance, labor cost and benefits.

     Net income for the six months  ended June 30, 2000  increased by $78,531 or
19.81% as compared to the same period in the previous year. This increase in net
income is a direct result of continued  sales growth which more than off-set the
increased  product and  operating  cost.  Income  from the two new  subsidiaries
formed in August 1999 was approximately $90,000.

     Depreciation  and  amortization  expense for the six months  ended June 30,
2000 was  $338,100,  an increase of $122,660  for the six months  ended June 30,
1999.  Amortization  relates  to  the  amortization  of  customer  lists,  being
amortized over 15 years and two Non-Compete  Agreements amortized over 5 years ,
per the  agreements.  The  increased  depreciation  relates to the  purchase  of
additional  trucks and other  equipment in 1999 and the acquisition of equipment
on the B & B Fuels  purchase  and the  purchase  of the  Company's  facility  in
Rockaway, New Jersey. Both acquisitions took place in August 1999.
<PAGE>
     Interest  expense  for the six months  ended June 30,  2000 was  $98,100 as
compared to $76,940 for the six months  ended June 30, 1999.  This  increase was
due to debt incurred in  connection  with the  acquisitions  of B & B Fuels (New
York),  the property in Rockaway,  New Jersey,  and additional  trucks and other
equipment.


Liquidity and Capital Resources

     For the six months  ended June 30,  2000,  compared to the six months ended
June 30,  1999,  the  Company's  cash  position  decreased  by  $3,840,685  from
$6,107,665  to  $2,266,980.  For the  year  ended  December  31,  1999,  cash of
$5,867,100 was generated from the Company's  initial  public  offering.  For the
year ended December 31, 1998, cash was generated through operations,  net income
and collections of customer advance payments.

     The  Company  has  the  following  Agreement  with  its  primary  financial
institution.  The company's credit line was increased by $250,000 to $750,000 at
1/2% below prime,  the  outstanding  balance is $292,228 at June 30,  2000.  The
Company has a three year term loan of $675,000  with a balance of  approximately
$225,000 at June 30, 2000. The Agreement with the bank has a current  expiration
date of June 30, 2001.

     The Company  received net proceeds from its initial  public  offering in an
amount  of  $5,867,100.  The  Company  believes  that the net  proceeds  of this
offering,  coupled with the bank  agreements  and income from  operations,  will
fulfill  the  Company's  working  capital  needs for the next 12 months.  As the
Company  continues  to grow,  investigate  new  ventures,  and  strengthens  its
infrastructure  to position itself for additional  growth,  bank borrowings,  or
other debt  placements and equity  offerings may be  considered,  in part, or in
combination, as the Company's situation warrants.

Seasonality

     The  Company's  operations  are  subject to seasonal  fluctuations,  with a
majority of the Company's business occurring in the late fall and winter months.
Approximately 70% of the Company's revenues are earned and received from October
through March, and the  overwhelming  majority of such revenues are derived from
the sale of home heating products  including  propane gas and fuel oil. However,
the seasonality of the Company's  business is offset, in part, by an increase in
revenues from the sale of HVAC products and services,  diesel and gasoline fuels
during the spring and summer months, due to the increased use of automobiles and
construction apparatus.

     From May through September,  Able Oil can experience considerable reduction
of retail  heating oil sales.  Similarly,  Able Propane can experience up to 80%
decrease  in  heating  related  propane  sales  during  the  months  of April to
September,  which is offset  somewhat by an increase of pool heating and cooking
fuel.

     Over 90% of Able  Melbourne's  revenues are derived from the sale of diesel
fuel for  construction  vehicles,  and  commercial  and  recreational  sea-going
vessels  during  Florida's  fishing  season  which  begins  in April and ends in
November.  Only a small percentage of Able Melbourne's revenues are derived from
the sale of home heating fuel.  Most of these sales occur from December  through
March, Florida's cooler months.
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1.           Legal Proceedings

                  None.

ITEM 2.           Changes in Securities and Use of Proceeds

                  None.

ITEM 3.           Defaults Upon Senior Securities

                  None.

ITEM 4.           Submission of Matters to a Vote of Securityholders

                  On June 23,  2000,  the  Company  held its  Annual  Meeting of
                  stockholders.  The stockholders  re-elected all six members to
                  the Company's Board of Directors for the coming year, approved
                  the Company's 2000 Employee Stock Purchase Plan,  approved the
                  Company's  2000  Employee  Stock Bonus Plan,  and ratified the
                  appointment  of  Simontacchi  & Company  LLP as the  Company's
                  independent  auditors for the fiscal year ending  December 31,
                  2000.

ITEM 5.           Other Events

                  None.

ITEM 6.           Exhibits and Reports on Form 8-K

                  (a) Exhibits

                           Exhibit 27: Financial Data Schedule

                  (b) Reports on Form 8-K

                           The  Company  did not  file any  reports  on Form 8-K
                           during the three month period ended June 30, 2000.
<PAGE>
                                   SIGNATURES


     Pursuant to the  Requirements  of the  Securities and Exchange Act of 1934,
the  registrant  has duly  caused the  project to be signed on its behalf by the
undersigned thereto duly authorized


                                                               ABLE ENERGY, INC.



August 14, 2000                                        By: /s/Timothy Harrington
                                                              Timothy Harrington
                                                         Chief Executive Officer